Gold gets a lift from wavering dollar, stocks

Gold futures inched higher Monday as investors questioned the dollar rally’s near-term durability, its weakness a boost for global demand for the precious metal priced in the U.S. unit.

December gold (GCZ8) rose $1.90, or just below 0.2%, to $1,202.90 an ounce. Gold logged a narrow win for last week after prices had suffered weekly losses over the previous two weeks.

There has been a shift in sentiment for gold in recent weeks, as dollar performance has started to struggle. A move above $1,217 resistance would be a key technical development to signal a change in trend.”

The ICE U.S. Dollar Index fell nearly 0.3% to 94.71 in early Monday trade.

Gold also gained as stocks indicated a soggy start, pushed down after a streak of gains as U.S.-China trade worries bubbled up anew. On Friday, Bloomberg reported that President Trump had instructed aides to proceed with tariffs on $200 billion of Chinese products. China, over the weekend, said it may decline the offer for renewed trade talks if the U.S. was moving ahead with tariffs.

December silver (SIZ8) rose 5 cents, or 0.4%, $14.20 an ounce. It settled Friday at $14.142, the lowest settlement for a most-active contract since January 2016, according to FactSet data. The metal lost 0.2% for last week.

Read: Drop in silver prices to 32-month lows prompts sellout of Silver Eagle coins at U.S. Mint

“A key development over recent sessions has been the move on the gold/silver ratio to record levels,” added Perry. “Normally it would be a case where above 80 is considered stretched on a long-term basis. The ratio is currently around 85 and is the highest since 1995. This would suggest that gold is likely to underperform silver in the weeks/months ahead.”

Elsewhere, December copper (HGZ8) eased 0.7% to $2.6255 a pound, after notching a rise of roughly 0.9% for last week. October platinum (PLV8) shed 0.6% to $798 an ounce, after a weekly gain to 2.3%. December palladium (PAZ8) changed hands at $971.90 an ounce, up 0.1% after a narrow advance last week.

The SPDR Gold Trust exchange-traded fund (GLD) rose 0.2% early Monday after trading nearly flat for last week, while the iShares Silver Trust (SLV) rose 0.7%, recovering a weekly loss of nearly 0.5%. The VanEck Vectors Gold Miners ETF (GDX) traded up 0.3%, following a weekly rise of about 0.8%.

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